• To be set up by treaty among euro zone countries
  • To be able to intervene in primary bond markets
  • Half of capital paid in by 2013; rest in annual installments
  • Interest rates to be in line with IMF principles
  • Confirms EUR 700 bln capital base; 80 bln in paid-in capital EUR 620 billion in callable capital

Treaties are always contentious in the euro zone. Ireland derailed the European constitution 6-7 years ago and Denmark set back the Maastricht treaty for several years in the early 1990s.

Nothing like a good referendum! Bring it on!

Buy long-term volatility in EUR/USD if the Treaty goes to a referendum…

Schaeuble says Germany’s share will be 27% and the Treaty will be presented to national parliaments by the end of June.